In this paper, we take an organizational view of organized crime. In
particular, we study the organizational consequences of product
illegality attending at the following characteristics: (i) contracts
are not enforceable in court, (ii) all participants are subject to
the risk of being punished, (iii) employees present a major threat
to the entrepreneur having the most detailed knowledge concerning
participation, (iv) separation between ownership and management is
difficult because record-keeping and auditing augments criminal
evidence.